Tuesday, May 12, 2020
Friday, May 08, 2020
On May 7, 2020, Governor Cuomo signed Executive Order 202.28 which tackled major changes to landlord-tenant matters in light of the COVID-19 pandemic, including an extension to the eviction moratorium, the usage of security deposits towards rent, and the prohibition on charging late fees.
1. Eviction and Foreclosure Moratorium Extended to August 20, 2020 for Tenants Who Are Unable to Pay Rent or Mortgage Payments due to COVID-19.
On March 7, 2020, Executive Order 202.8 previously ordered an eviction moratorium from March 7 to June 20, 2020. Executive Order 202.28 extends that moratorium to August 20, 2020. Specifically, no proceedings or enforcement may be initiated for residential or commercial tenants on the basis of nonpayment of rent due to the COVID-19 pandemic.
Similarly, foreclosure proceedings of any residential or commercial mortgage for nonpayment of such mortgage due to COVID-19 is also prohibited until August 20, 2020.
It is important to note that unlike the Executive Order 202.8 which ordered a moratorium on ALL evictions and foreclosures until June 20, 2020, the extension of the eviction and foreclosure moratorium to August 20, 2020 under Executive Order 202.28 only applies to residential or commercial tenants who are unable to pay their rent and are eligible for unemployment insurance or benefits under state or federal law, or otherwise facing financial hardship due to COVID-19. Thus, eviction proceedings based on breach of material terms under the lease other than nonpayment may start beginning June 20, 2020.
2. Residential Landlords May Apply Security Deposit towards Rent upon Written Agreement.
In addition to the extension of the eviction moratorium, residential landlords, with the tenant’s consent, are now allowed to apply the security deposit and any interest accrued to pay rent in arrears or rent that will become due through a written agreement. If the security deposit is less than one month’s rent, the consent does not constitute the landlord’s waiver for the remaining rent. Executive Order 202.28 expressly allows execution of this written agreement by email. Landlords and tenants should contact counsel prior to making any agreements to ensure that their interests are protected.
Any security deposit used as payment of rent must be replenished by the tenant at the rate of 1/12 the amount used as rent per month and such payments begin 90 days from when the security deposit was used as rent. Alternatively, tenants may retain insurance that provides relief for the landlord in lieu of monthly security deposit replenishment. However, like the extension, the above relief in relation to security deposits only applies to tenants eligible for unemployment insurance or benefits or are otherwise facing financial hardship due to COVID-19.
3. Late Charges for Residential Tenants Prohibited for Periods beginning March 20, 2020 to August 20, 2020.
Executive Order 202.28 also prohibits landlords from demanding or being entitled to any payment, fee, or charge, for late payment of rent pursuant to RPL 238-a occurring from March 20, 2020 to August 20, 2020. This provision only applies to residential properties but take note that it is not limited to tenants who were unable rent to pay due to COVID-19.
1. Eviction and Foreclosure Moratorium Extended to August 20, 2020 for Tenants Who Are Unable to Pay Rent or Mortgage Payments due to COVID-19.
On March 7, 2020, Executive Order 202.8 previously ordered an eviction moratorium from March 7 to June 20, 2020. Executive Order 202.28 extends that moratorium to August 20, 2020. Specifically, no proceedings or enforcement may be initiated for residential or commercial tenants on the basis of nonpayment of rent due to the COVID-19 pandemic.
Similarly, foreclosure proceedings of any residential or commercial mortgage for nonpayment of such mortgage due to COVID-19 is also prohibited until August 20, 2020.
It is important to note that unlike the Executive Order 202.8 which ordered a moratorium on ALL evictions and foreclosures until June 20, 2020, the extension of the eviction and foreclosure moratorium to August 20, 2020 under Executive Order 202.28 only applies to residential or commercial tenants who are unable to pay their rent and are eligible for unemployment insurance or benefits under state or federal law, or otherwise facing financial hardship due to COVID-19. Thus, eviction proceedings based on breach of material terms under the lease other than nonpayment may start beginning June 20, 2020.
2. Residential Landlords May Apply Security Deposit towards Rent upon Written Agreement.
In addition to the extension of the eviction moratorium, residential landlords, with the tenant’s consent, are now allowed to apply the security deposit and any interest accrued to pay rent in arrears or rent that will become due through a written agreement. If the security deposit is less than one month’s rent, the consent does not constitute the landlord’s waiver for the remaining rent. Executive Order 202.28 expressly allows execution of this written agreement by email. Landlords and tenants should contact counsel prior to making any agreements to ensure that their interests are protected.
Any security deposit used as payment of rent must be replenished by the tenant at the rate of 1/12 the amount used as rent per month and such payments begin 90 days from when the security deposit was used as rent. Alternatively, tenants may retain insurance that provides relief for the landlord in lieu of monthly security deposit replenishment. However, like the extension, the above relief in relation to security deposits only applies to tenants eligible for unemployment insurance or benefits or are otherwise facing financial hardship due to COVID-19.
3. Late Charges for Residential Tenants Prohibited for Periods beginning March 20, 2020 to August 20, 2020.
Executive Order 202.28 also prohibits landlords from demanding or being entitled to any payment, fee, or charge, for late payment of rent pursuant to RPL 238-a occurring from March 20, 2020 to August 20, 2020. This provision only applies to residential properties but take note that it is not limited to tenants who were unable rent to pay due to COVID-19.
Governor Cuomo has signed a new executive order extending many of the previous actions taken in his previous orders. Included among these extensions is the tolling of statute of limitations until June 6, 2020. This is necessary, of course, because litigants are still prohibited from filing new non-essential actions. Litigators should be aware that this does not toll all deadlines in pending and ongoing actions. Notices of appeal, motion deadlines, time to answer and appear, and discovery deadlines are all up and running with the courts' expanded remote operations. Additionally, statute of limitations on federal claims are not affected as federal courts remain fully operational. A copy of the executive order, No. 202.28, can be found HERE.
Stay tuned to our blog for big changes to the current commercial and residential eviction moratorium.
Stay tuned to our blog for big changes to the current commercial and residential eviction moratorium.
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Thursday, April 30, 2020
Motion practice is back.
This afternoon Chief Administrative Judge Lawrence K. Marks released a memorandum detailing the expansion of virtual court operations. The most important change is the expansion of motion practice. Starting Monday, May 4, 2020, parties may file new motions and responsive papers to previously filed motions in all pending cases. Previously, motions were only permitted in emergency and/or essential matters.
For a summary of what has been operational up until this memorandum, see or previous blogs HERE and HERE.
Courts will continue to conduct virtual conferences on matters the court believe can be resolved, and judges are encouraged to refer cases to virtual alternative dispute resolution (ADR) centers.
This is yet another step closer to full virtual court operations, and it is a big one. Opening up motion practice means litigators can operate at 90% capacity if they make full use of virtual depositions and other electronic tools. The next step needed is permission to file new matters. A full copy of the April 30, 2020 memorandum can be found HERE.
This afternoon Chief Administrative Judge Lawrence K. Marks released a memorandum detailing the expansion of virtual court operations. The most important change is the expansion of motion practice. Starting Monday, May 4, 2020, parties may file new motions and responsive papers to previously filed motions in all pending cases. Previously, motions were only permitted in emergency and/or essential matters.
For a summary of what has been operational up until this memorandum, see or previous blogs HERE and HERE.
Courts will continue to conduct virtual conferences on matters the court believe can be resolved, and judges are encouraged to refer cases to virtual alternative dispute resolution (ADR) centers.
This is yet another step closer to full virtual court operations, and it is a big one. Opening up motion practice means litigators can operate at 90% capacity if they make full use of virtual depositions and other electronic tools. The next step needed is permission to file new matters. A full copy of the April 30, 2020 memorandum can be found HERE.

Monday, April 27, 2020
Major NEW Fair Housing Regulations are effective June 20, 2020 according to the NYS Board of Real estate meeting that was held on April 27, 2020.
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ALERT: Real estate brokers need to display this new notice in their offices & on their websites. Real estate brokers must audit their real estate salespersons' websites under this new regulation. Lieb Compliance is ready to help.
The new advertising regulation is 19 NYCRR 175.29:
ALERT: Real estate brokers must implement trainings immediately on their salespersons distributing the new required disclosure form or risk both license law violations and lawsuits for discrimination. Lieb Compliance is ready to help.
The new disclosure regulation is 19 NYCRR 175.28:
Interestingly, subsection (e) was deleted from 175.28 after public comment. Subsection (e) previously stated "[a] real estate broker shall be jointly liable for any violation of this section committed by any licensed individual associated with such broker." Our comment on the topic, given on January 21, 2020, was discussed at the NYS Board of Real Estate meeting on April 27, 2020.
We commented:
a) A real estate broker shall be responsible to ensure that each individual licensed pursuant to Article 12-A of the New York Real Property Law and associated with such broker provides to a prospective purchaser, tenant, seller, or landlord upon first substantive contact a disclosure notice furnished by the Department, containing substantive provisions of the New York State Human Rights Law. The disclosure notice shall set forth how Human Rights Law complaints may be filed, and such other information as the Department deems pertinent.
b) The disclosure notice required pursuant to paragraph (a) of this section, may be provided to a prospective purchaser, tenant, seller, or landlord by any of the following means: email, text, electronic messaging system, facsimile, or hardcopy. An electronic communication containing a link to the disclosure notice required pursuant to paragraph (a) of this section shall be permissible, provided the communication also contains text to inform the prospective purchaser, tenant, seller, or landlord that the link contains information regarding the New York State Human Rights Law. Oral disclosure does not satisfy the requirements imposed by this section.
c) The disclosure notice required by paragraph (a) of this section shall apply to all real property whether or not it is used or occupied, or intended to be used or occupied, wholly or partly, as a home or residence of one or more persons regardless of the number of units, and shall include: condominiums; cooperative apartments; vacant lands, including unimproved real property upon which such dwellings are to be constructed; or commercial properties.
d) A real estate broker, licensed real estate salesperson, or licensed associate broker that provides the disclosure notice required pursuant to this section by hardcopy, shall obtain a signed acknowledgment from the prospective buyer, tenant, seller, or landlord. Such signed disclosure notice shall be retained for not less than three years. A real estate broker, licensed real estate salesperson, or licensed associate broker that provides the disclosure notice required pursuant to this section by email, text, electronic messaging system, or facsimile, shall maintain a duplicate copy of such disclosure and shall retain the same for not less than three years. If the prospective buyer, tenant, seller, or landlord declines to sign the disclosure notice, the real estate broker, licensed real estate salesperson or licensed associate broker shall set forth under oath or affirmation a written declaration of the facts regarding when such notice was provided and shall maintain a copy of the declaration for not less than three years.
Interestingly, subsection (e) was deleted from 175.28 after public comment. Subsection (e) previously stated "[a] real estate broker shall be jointly liable for any violation of this section committed by any licensed individual associated with such broker." Our comment on the topic, given on January 21, 2020, was discussed at the NYS Board of Real Estate meeting on April 27, 2020.
We commented:
This subsection is superfluous, to an extent, and creates issues with regulatory construction as it indicates that a broker is not jointly and severally liable for other violations of 19 NYCRR 175 and as such, it should be stricken. I imagine the intended purpose is to clarify the impact of RPL 442-c on this regulation, but it should be further clarified as it's ripe for litigation the way it currently exists, as proposed.
As you can see, it's always important to participate in the regulatory process through comments.
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ALERT: Real estate brokers need to display this new notice in their offices & on their websites. Real estate brokers must audit their real estate salespersons' websites under this new regulation. Lieb Compliance is ready to help.

The new advertising regulation is 19 NYCRR 175.29:
a) A real estate broker shall display and maintain at every office and branch office operated by such broker a notice, furnished by the Department, indicating the substantive provisions of the New York State Human Rights Law relative to housing accommodations. The notice shall set forth
how Human Rights Law complaints may be filed and such other information as the Department deems pertinent.
b) The notice required by paragraph (a) of this section shall be prominently displayed in the window of such office and any branch office maintained by such broker if such broker also provides listings or other postings in the window of such location and must be visible to persons on that portion of the sidewalk adjacent to such office or branch office. If any office or branch office is not accessible from the sidewalk or if postings are otherwise prohibited by any other applicable law, then the notice
required pursuant to paragraph (a) of this section shall be prominently posted in the same location the business license is posted pursuant to subdivision 3 of section 441-a of article 12 of the Real Property Law.
c) All websites created and maintained by real estate brokers, associate real estate brokers, real estate salespersons and any real estate team, as such term is defined by section 175.25 of this title, shall prominently and conspicuously display on the homepage of such website a link to the Department’s notice as required by paragraph (a) of this section, which shall be made available by the Department.
d) A real estate broker, licensed real estate salesperson, or licensed associate broker shall have displayed at all open houses of all real property the notice required by paragraph (a) of this section. In addition, a real estate broker, licensed real estate agent, or licensed associate broker shall
have available at all open houses and showings of all real property the notice required by paragraph (a) of section 175.28 of this part.
Interestingly, subsection (e) was deleted from 175.29 after public comment. Subsection (e) previously stated "[a] real estate broker shall be jointly liable for any violation of this section committed by any licensed individual associated with such broker." Our comment on the topic, given on January 21, 2020, was discussed at the NYS Board of Real Estate meeting on April 27, 2020.
We commented:
We commented:
This subsection is superfluous, to an extent, and creates issues with regulatory construction as it indicates that a broker is not jointly and severally liable for other violations of 19 NYCRR 175 and as such, it should be stricken. I imagine the intended purpose is to clarify the impact of RPL 442-c on this regulation, but it should be further clarified as it's ripe for litigation the way it currently exists, as proposed.
As you can see, it's always important to participate in the regulatory process through comments.
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Finally, real estate schools now have to record their fair housing trainings & Lieb School is already in compliance with the new regulation, 19 NYCRR 177.9:
Finally, real estate schools now have to record their fair housing trainings & Lieb School is already in compliance with the new regulation, 19 NYCRR 177.9:
(a) Every entity approved to provide instruction pertaining to fair housing and/or discrimination in the sale or rental of real property or an interest in real property shall cause a recording to be created of each course in its entirety. Such recording shall contain both video and audio of the instruction.
(b) The recording required by paragraph (a) of this section shall be maintained by the approved entity for at least one year following the date such course was provided to an enrolled student. If the entity knows or suspects that the recording is or will be the subject of litigation, then the approved entity shall maintain such recording as required by law.
(c) The recording required by paragraph (a) of this section may be subject to audit by the Department pursuant to section 177.11 of this part.
